Sample White Paper on Regal Cinema

Sample White Paper on Regal Cinema - TO FROM DATE Eric...

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TO: Eric Eldard, Assistant Manager, Regal Entertainment Group FROM: Melinda Hanson DATE: March 29, 2006 SUBJECT: New Marketing Strategies to Increase Popcorn/Drink Combo Sales Summary Fairfax Towne Center 10 is a theater that acquires most of its revenue from loyal customers. Since the theater retains only 5% of movie ticket sales, the majority of its profit comes from sales at the concession stand. Currently the theater has implemented the Regal Crown Club Card, which rewards customers with movie credits for purchasing tickets and concession items. These credits can then be redeemed for various free items such as popcorn, drinks, and even free movie passes. The combos are a great way to encourage multiple sales, which increase profits. An active campaign currently being put into practice is to try to increase sales of popcorn combos through more aggressive selling by the concessionists. If a customer orders a medium or large popcorn, the concessionist is to recommend a combo which includes drinks and/or candy. Problem and Background The strategy being exercised currently is resulting in few combos being sold. There are many factors that contribute to this fact. Initially it is difficult to know exactly what the total price of a combo costs. Customers may hesitate to order a combo; fearful that they do not have enough money to pay for it. It also appears that when customers purchase a combo they will pay the same total price if they order each item individually, so there is no real incentive for them to order a combo. Another problem is lack of information by the concessionists to effectively sell the combos. 1. The banner on the wall, before the concession stand. Once the customer walks up to the counter to place the order, it is no longer visible. (Note: no prices visible.)
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2. The lit up marquee on the back wall over the concession stand. (Note: no combo prices.) 3. The lit-up marquee on the back side of the coke dispenser. (Note: Save $2 on any large candy when purchase a combo; although not know what combo is, or how much it will cost.)
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Sample White Paper on Regal Cinema - TO FROM DATE Eric...

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